Festive season to boost India gold buying

Gold prices in India, world's largest gold market is all set to welcome yet another peak buying season as Diwali (Festival of lamps, one of India's major festival) is around the corner.

Gold bangles on display

NEW DELHI(BullionStreet): Gold prices in India, world's largest gold market is all set to welcome yet another peak buying season as Diwali (Festival of lamps, one of India's major festival) is around the corner.

Analysts said jewellers and stockists began bul buying ahead of the peak season while consumers are likely to join the fray from next week onwards.

Indian gold prices always followed global trends while demand were mostly driven by local factors such as festivals and marriage seasons.

The precious yellow metal recovered to close higher for the week on Friday. Spot gold ended at Rs 27,120 per ten grams while Gold of 99.9 and 99.5 per cent purity recovered by Rs 110 each to Rs 27,120 and Rs 26,980 per 10 grams, respectively.

However, silver suffered a setback and settled lower Friday. A kilogram of silver dropped Rs 300 to finish Rs 53,800 in the bullion markets.

On the other hand, silver ready fell further by Rs 300 to Rs 53,800 per kg and weekly-based delivery by Rs 400 to Rs 53,210 per kg, respectively. Silver coins remained steady at Rs 62,000 for buying and Rs 63,000 for selling of 100 pieces.